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Forex - Dollar higher as euro tumbles on rate outlook uncertainty

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Forex Pros - The U.S. dollar was broadly higher against its major counterparts on Thursday, while the euro tumbled amid uncertainty over the timing of future rate hikes by the European Central Bank.

During U.S. morning trade, the greenback was sharply higher against the euro, with EUR/USD tumbling 1.30% to hit 1.4632.

Speaking after the ECB maintained its minimum bid rate at 1.25%, bank chief Jean-Claude Trichet said the central bank will monitor upside inflation risks "very closely," suggesting it may wait until after June to raise interest rates again.

The greenback was also higher against the pound, with GBP/USD shedding 0.44% to hit 1.6418.

Earlier in the day, the Bank of England kept its official cash rate at 0.50%, in a widely expected move amid concerns over the strength of the U.K.'s economic recovery.

Elsewhere, the greenback was down against the yen but up against the Swiss franc with USD/JPY tumbling 0.81% to hit 79.96 and USD/CHF surging 0.73% to hit 0.8680.

Meanwhile, the greenback was higher against its Canadian, Australian and New Zealand counterparts with USD/CAD rising 0.52% to hit 0.9642, AUD/USD tumbling 0.72% to hit 1.0668 and NZD/USD slipping 0.18% to hit 0.7879.

Earlier Thursday, the Department of Labor said U.S. initial jobless claims jumped to an eight-month high last week, rising by 43,000 to a seasonally adjusted 474K, confounding expectations for a fall to 400K.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, surged 0.80%.

Later Thursday, U.S. Federal Reserve Chairman Ben Bernanke was to speak.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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